esks more than 4 miles long. keep students in school. visit boostup.org and take the first step. president obama pushing for more housing rescues. even though this need to be rescued itself. welcome, i am charles payne in for neil cavuto. the president's speech today in illinois confirming that he is going to keep committing to help the housing market. >> the good news is over the past four years we have helped homeowners stay in their homes and prices are up and fewer americans see their homes underwater. but we are not done yet. charles: did you hear that last part? >> we are not done yet. >> we are not done yet. charles: know, he is not done

yet. maybe you should be. our next guest says it is time for the government to butt out. you didn't seem too enthusiastic about the speech. >> remember when reagan used to joke that the most used words in the english language are i'm from washington, i'm here to help you? charles: yes. >> the stairs every taxpayer and responsible homeowner. the government got us into the housing prices in the first place with easy money and now the government and now the president is threatening that he is going to do more. charles: here is the thing. this is what you hear from a lot of people that backed the president on these things. almost all of his policies are

close in the veneer of economic policies. but once they go through, we are told that economics have nothing to do with this. this is about americans having a hard and america being if your country. at the end of the day, maybe theyydon't care what kind of economic damage they have done if they can somehow keep a few more people in their homes, even at the expense of regular homeowners and those who have been responsible and industry itself. >> there is no question that some of those in these homes am a they probably are victims. they got caught up in the bubble. it didn't cause it. it was caused by politicians and bureaucrats in washington. they bought a home that they thought that they could afford or they thought it would rise in value. they could sell it if they couldn't afford it. all of a sudden they are left with an underwater mortgage and they're having a lot of trouble in the government is giving the money to stay home if they can afford, which probably actually isn't a favor to them, it is probably making them go deeper in debt. i sort of feel sorry for those

people. but mostly i look at the government causing one problem after the other and i got very frustrated that whether we are victimized as homeowners were taxpayers or investors, getting government out of the way is the only conclusion we have to look at this mess. see on what you think the president will do? in the statement by saying that we are not done. but he talks about homeownership and he talks about prices being up. what the government somehow try to stall this? mean, what can they do now? it's a pretty okay recovery. >> here is the ironic thing. the government has conflicting goals. wants to make housing affordable. so it is good for housing prices to go down on the other hand and it is saying that oh, good, home prices are up, which is inconsistent with the goal. prices should be where ever the

markets as they should be. >> they have this reverse touch, they create reverse subsidies. charles: the markets were lower we're going to go no matter what >> the general motors stock would now how have to result in

$100 a share simply for or simply for taxpayers to break even. by the way, by now it is below 40. before they didn't take a penny from uncle sam. sales and profits are soaring. >> they have been making great cars for years. also the consumers have been putting off their purchases for a long time. this is the perfect time for car companies to be selling of this market. because consumers are hungry and they have been holding onto their cars for 10 or 12 years. it's a perfect time. they have been making magnificent cars. i think that for sheer.

charles: there a lot of junky loans out there. the board is still outperforming. taking market share is. it is the preferred product of the public. does that have anything to do with the fact that maybe management might also be smart enough to know what people want? >> it means that he is really saying that what we are doing in europe, we are going to do that here and save money. also remember the prime track of theirs come in at 50, by not taking this money, they really have good marketing. they are hiring 3000 new people which most of those are right

collar. you're watching huge growth and they have increased to .9% market share so far this year. and i have to give them kudos for that. >> unfortunately a lot of those people are not going to be american citizens because they are and they talk about the president. he talked about education and he still opposes efforts to modernize our school system and to get the unions out who want to oppose that modernization. >> yes, that is another story. >> forte is focusing on hiring people. charles: the thing with ford and -eneral motors. you think that general motors -- do you think they were hampered because they were taking his orders from the white house? >> officially ttey have denied it and in private talks that have talked about it so i think

that you would agree that come when you? >> absolutely. they put all of their money in one basket and you and i have discussed this multiple times in the past. they take on everything it is, whatever the government told them to do if you ask them, there is no hampering with the government being involved in a business. but it is going to make an impact. so they made a great fuel-efficient car and tried to shove these cars down our throats. charles: people don't really want those big trucks that we talked about earlier i think the average car is like over a dozen years old. as far as financing is easier,

and people are going to go out and get a new car. >> i won't disagree with you at all. >> i think that we will get very close to that 16 million cars. i think that you are looking at every manufacturer who wants a piece of the market share. i think that ford will continue to take a chunk of that market share and we will see a little bit of growth. we are not going to go over 60 million, i do not believe. charles: what do you think? >> unless we get a real growth strategy for the economy after people go through replacing those cars that they have been putting off for years and now they see the good cars coming afford, i think it will slow down the. even ford said they expect europe to return profitability by middecade. so europe will be growing, but not for another two years. >> they are selling us for 31 million. that's pretty good market. >> we will see, but one thing we

know is that ford did it right and they are being remembered. >> coming up, the health care law they are doing it to democrats. how the president's friends are fleeing and fast. and tomorrow night don't forget a whole hour dedicated to you and how to make your mark on the market right here on the fox business network i need to redeee venture miles before my demise. okay. it's easy to era any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and.it's taken care of. this is prettyasy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how d he not see that coming? what's in your wallet?

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charles: more trouble for the health care law and even democrats are saying the new poll showing half of moderate and conservative democrats are against the law. this is the same group that overwhelmingly supported it in 2010. businesses are scared of going broke. that is why this action is being pushed. we keep hearing about this. this is maybe the last chance to sort of derail this by defining it. tells about how you'd go about this. >> i think it is very likely that the american people, if they hear the case from congress, that can be done. congress will have to fund the federal government. the very next day when people

start to talk about the exchanges of obamacare. those will be set to start on january 1. congress should pass a law is really want to fund the federal government, but we don't want to fund this law. this was jammed down our throats, this is causing insurance costs go up and causing all kinds of problems. charles: despite the fact that this is overwhelmingly on possible, you guys would call it something that must pass, like the budget or something. you think that republicans are mostly obstructionists and that they don't care about the country over all images single-mindedly, on their own agenda, even if it means destroying entire nation, could this backfire on you? >> if you don't care about the country, if you look at the current situation, you see that we are becoming a european welfare state with the growth rate that we see.

this health care is a huge drag on growth. there was a speech today on jobs by the president or the second-largest employer in this country is a temp agency and part of the reason for that is we need to defund this law so that the economy can start growing again. that is a totally reasonable thing for congress to do. the president saying that i want to shut down the government because i insist upon having this unpopular law and it is such a drag on economy and the economy and he is the one who would be putting up in the situation. charles: i listen to his speech today and he talked about how the health costs have come down dramatically and they distillate this health health care lies a raging success already. the unlikely that he will have an epiphany. so let's take the next step. have to say,et refunded. some of you are saying that this is just rude to single out republicans who aren't telling the tea party that they will

total one. >> i will not accept the premise that this shouldn't happen. seventy-five days between now and when the government needs to be funded. the only way to have a debate is actually start that debate and i think that we are unders undertaking mess and say look, it's realistic. the house of representatives passiveness and we are eager to fund the government has september 30. send it over to the senate. john boehner said the biggest mistake became a state that he made the fiscal cliff edition of the if the senate wants to take the responsibility terrifying action and house republicans need to step up, say we don't support this law. we have tried to rely on a

president. but as conservative republicans, now is a time to read and to take the case to the american public and we're going to do this in september. charles: i have to tell you that we are poised for a big showdown in a lot of people are rooting for you. because i think you are right. when you crunch the numbers, this is an unmitigated catastrophe for everyone in this economy. so we will keep up what we are doing and we will have you back on real soon. >> glad to be here say on the rollout of this law has been a mess. it is so messy that the white house has even delayed the employer mandate part of it. phil rowe wants to know why the delay? more importantly, who is responsible for a? representative, thank you for pate content coming on the show and take your time to spend with us. when did the president get the power to sort of cherry pick apart along a stream of hard doesn't? >> charles, when i came out of the treasury department, i asked the congressional research

service, which is a nonpartisan service that we asked about. if they think the law is unconstitutional can do that but they have actually pushed this law and the justice department has gone ahead to adjudicate this in the supreme court. so i don't think he has the right to do that. we held a hearing yesterday on the health subcommittee here. we held a hearing on the mandate. this is a job destroyer. i have held hearings on this country and small businesses, one after another, they have come in and said that they're going to cut hours and we're not going to expand our business because of the flawed.

charles: that is why unions are against it and it is hard to defend. >> the president cooked this up like doctor frankenstein and now he wants republicans to take the blame. >> absolutely. the people who were responsible for administering this law didn't know anything about this when it came out i can't speak for someone's intentions, but it looks like it was a political decision because it is an unmitigated disaster soon before i let you go, what do you think that we will see here? do think that this is a one-year delay on the employer mandatt because we have seen a lot of waivers and things like that since this has gone into effect. it looks like ultimately they're just a handful of people carrying the way for the masses.

>> there is no doubt. you have medicaid and individual mandate and if one of those legs comes out, the funding doesn't work. i will walk you through this mitigated disaster and this is walking down the same pattern i can promise you when we get the bill for this, we will jump off the key bridge hand-in-hand into the potomac river when we get the bill for the obamacare c-1 representative, thank you so much for taking your time to spend with us. charles: instead of trying to run away from business, this company is saying cash in on it. i protecting you from it. we will have that next. this pu, striving to bring insight to every investment,

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charles: nsa snooping continues. lawmakers on capitol hill today pushing to cut funding for that agency. cisco is spending $2.7 million on a cybersecurity firm. they say that cybersecurity is big business and everybody wants in. monica crowley and chris is here as well. >> well, i think people are very concerned about not only hackers, but also what we have seen with the nsa surveillance program. it is a smart move for cisco to go ahead and purchase the company. again, it is big business. i think that what you are seeing is that consumers are concerned. hackers are getting into the social network. we are seeing it being more targeted to consumers and

private companies are also concerned about sensitive information. charles: does this speak to the information that people have sort of given up on the idea that the government can protect us from this stuff? >> there is a lot of data out there to be col> there is a lott theee to be collected about our activities and my styles and interest. things that we do. the real conversation needs to be about this, not figuring out how we buy our way out of anonymity. >> may be an imperfect world that would be the way. but here's the problem. i don't think the people out there respect that.

the middle eastern people, i don't think they respect us enough to have that sort of discussion that christian is talking about. >> i totally agree with you. to be clear, the vote in the house today was targeting the nsa snooping program. the one getting bigger and bigger and bigger. >> i will be really cynical here. because i think it's really cute of the house things that a vote or even an actual legislation that was passed would stop this kind of snooping on american citizens. it is not going to stop. i also think that, you know, the american people, what you're talking about, cybercompanies cashing in on the fact that the government is spying on us and we are open to hacking. i also think that it is to the people figure they can stop that as well. if the government wants to track you, they will find a way to track you. this is not going to stop. the horse has left the barn.

i know people want to believe that the computer is protected and safe. >> so there is no way that the american public and make a american public and make a statement about this and say, we don't think that google has a right to share my information and i don't think the federal government has a right to look at all my phone calls to my cousin in newark, new jersey, because that should not raise any red flags. >> i do think that they have that option to say that we don't want this information exposed, we don't want our government spying on us. they can draw that line in the sand. but that doesn't mean that the government will pay attention to thaa.

>> i think it is about economics. when you are looking at the nsa snooping program in particular, americans don't feel as comfortable with the government intruding, but we also have this balance with national security that we need to address as well. that is a debate that congress should be having. charles: is it just the idea of power corrupting absolute -- in other words, it doesn't matter, once you have this power, to monica's point, maybe it never changes? >> this is not just about president obama or even president bush. this has gone about doing business in becoming more and more sophisticated. more and more secretive. and it seems that america used to be confined to a group that they want a part of. everyone is open to being surveilled and now it is a problem. actually think that is a good thing because these problems are

allowed to flourish when they hide in darkness. charles: all right, not in my backyard takes a different twist. we really appreciate it. well, monica's favorite rap artists visited cuba. it has a whole lot of people furious. we will talk about that next.

♪ ♪ ♪ charles: forget 99 problems. he has 22 problems in florida is just one. he is joining stevie wonder and kanye west. who could forget that jc and his wife, beyoncé, vacation in cuba. mavacation in cuba. mario says that he is furious. why is that? >> frankly i will tell you that i'm disappointed. you have a number of individuals in high

they don't meet with the opposition. they don't meet with the families. but then some of them will save you should boycott florida and freedom. a land where they can choose where they want to do what they want to do, where they can open businesses. it is pretty silly at best. >> i think it is probably more silly than that you, you of course know it. you understand the atrocities and you have been a big proponent against not helping them in any way. anything that benefits the castro regime we should say no to.

you say that he would at least t didn't make it think that it was something like america was punishing. >> you're right. you know, i have been very consistent in supporting a two prong approach. number one is to try to do whatever we can to make sure that the regime doesn't get hard currency, which by the way, be used to shoot down american airplanes in aerospace. and the other part of this is to help civil society, the pro-democracy groups that are struggling to try to bring democracy to the island. it shouldn't surprise us. we have a lot of entertainers. the things that he said, he was an incredible races. the things he said about mexicans, the things that he said about, you know, how it

doesn't require evidence to execute people. the things that he said about wanting to nuke new york city and murder americans -- and yet, you have some of these shirts with his face on them. some people don't know better. but in his case they went to cuba. they hobnobbed with the regime and they did the whole regime agenda. they did not meet with opposition leaders. there is a music artist wrapper that has been in prison. and jc didn't even want to meet with him? it shows a little bit of ignorance, obviously. charles: we should also point out justin timberlake, the rolling stones. i made the rolling stones were trying to make up for that line of the puerto rican girls just trying to meet you. you think it would have any impact on the state

automatically? >> the state of florida is doing better than most of the country. unemployment is dropping, but i think that we have to remember who these folks are. they are entertainers, people appreciate them for their entertainment dollar. not necessarily for their intellectual value. but when they do things like hobnob with anti-american terrorist regimes, then i think that that is where you draw the line. >> okay. really fast, do you think you can have these actions that will make race relations work -- worse than they have to be? >> no, it won't. the reality is we live in a great country. charles: thank you very much, we really appreciate your time. okay, face plant or facelift? what you will want to miss. everything that you do, well,

you will know because facebook will have something to do with it. and attorney gloria allred contemplating a comeback.

charles: earnings season is a busy time. first up, facebook. they say this is largely been to success in advertising.

now we will probably see a flurry. >> let's just remember that there is an overlay here. they talk about millions of mobile subscribers. and charles, now we will see a lot more ads. i have to tell you that i don't feel too uncomfortable right now charles: maybe this is a good investment? >> i think he made a good call on her. but that is a lot of people. a lot of advertising. we are seeing it right here.

it was totally rigged, many say, but you have a pretty good company in advertising model. it still has a little bit of room to go, i believe. i don't know where it can go, but if you tell me this is a $40 stock someday, i would laugh at that. charles: i have to tell you that that idea wasn't a debacle. not a lot of remorse from the company. >> i would say that where there is smoke, there is fire. i look back 80 years 670%

increase over the past 80 years. but think about this, the average popcorn cost about three quarters with a movie ticket costs are a lot of this stuff that the fed calls transitory or temporary is here to stay but they don't really count this because it's volatile. >> here's another thing, if hollywood keeps spending $200 billion, they are going to have to charge you $40 and popcorn. >> yeah, and that is in here why

don't they spend more than a hundred thousand dollars on a script. >> a lot of them are so bad. here's a good one for you. here's something to think about because after the payroll tax hike kicked in, customers are not kicking it back because they are cutting back. these guys just aren't getting hammered because americans are getting hammered by their taxes, so they can afford to get hammered and the old fashion way. >> when we talking here? [laughter] charles: we're talking about what it's like since your taxes went up. >> this is really depressing. because beer usually goes up in

recession. if beer is going down, we must be in a depression. depression is nothing more than a long period of high unemployment. we must be in a depression if nobody's drinking better. charles: a lot of people are knocking back the hard stuff. >> i will say that i looked at these numbers look across the pond, here in the state, the climate that we saw in beer drinking, far outweighs any increases. the lower classes suffering.

the guys in philly are not drinking peach schnapps or peach cider committee came here to drink beer. i think that they are struggling if they aren't getting their beer. the economy isn't as good as the president painted it to be. charles: you guys as usual, thank you. >> things are really heating up for the san diego mayor accused of sexual harassment. she is representing the woman wants america go. >> i was pleased in a headlock and moved around as a rag doll while he whispered sexual comments and my air. the boys used double miles from their capital one venture card to fly home for the big family reunion.

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>> mayor filner challenged me to give him an example about his behavior towards me is improper. i pointed out that he had asked me to work without my underwear on. he had no comeback. charles: explicit accusations coming out about san diego mayor bob filner. people are asking for him to stop down. the attorney for the woman accusing him of these lewd behaviors is running out. gloria allred, thank you for joining us. many say the mayor is not going to step down. >> that is what he says today. but i don't know what he will say tomorrow.

he didn't say exactly what help he needed. saying that she should come to work without panties on, placing her in a headlock, that is wrong. but he would like to marry her and consummate a relationship with her. that is wrong. i would think that he would know that the sexual harassment is wrong, long before now and long before he gets help you map.

charles: why did she endure this for months? why is that? >> she talked it out. the mayor asked her to be a reporter. she had been a reporter at a major san diego newspaper. she was also blessed with lots of experiences prior to her time at his administration. and he said that they all know what they are getting into. well, she had if she had really known what she was getting into, she would not have taken the job. now we will proceed with a lawsuit. his actions towards ireneeand other women brought shame on the beautiful and wonderful city of san diego.

charles: he is sort of off the handle, putting women in headlock, it would've come out a long time ago. >> well, not necessarily. a lot of people are in fear of losing their job or even if they are not, s of the person who was harassing them, the fear of a person in a position of power and we have a longtime congressman who is mayor and you would think that because he is head of the veterans committee in united states congress, that he would know what sexual-harassment is given on the military scandals out there. was he asleep during the hearings about senator bob packwood or herman cain, who i was involved with,. charles: i remember that. here's the thing. where do we go from here?

apparently another woman has cooe out. does it help when other women come out? they get a lot of publicity and other people come out of the woodwork and make the job a little bit easier. >> we empower women to speak out and not to be violent about what they believe are wrong against them, i am happy about that and i'm very proud of irene and the courage that she has shown. by the way, you are asking about why didn't she come out earlier. the mayor of the city was also a jar. so i am glad that she step forward now and she makes it be known soon we will all eventually know the truth. anything that empowers women is a good thing we applaud it. thank you so much, we appreciate your time. charlee: workers are tapped out.

but union guys are still ticked off. the hypocrisy is next who can show them how to build on your success, but not rely on it. who can focus on making your legacy last for generations to come? that someone is a morgan stanley financial advisor. and we're ready to work for you.

charles: the judge today fighting to hang on to the hefty %-a new report showing half of workers have no plans for retirement savings at all. most of their bosses are not providing for their retirement mercedes. from what i read these are the ones paying the public sector pension. >> i think that we mentioned that the pew charitable trusts

said that the nation's largest cities have about $100 billion in shortfalls in terms of paying for these pensions. it is an unsustainable path. and it is causing a big problem in states are trying to see what happened. we saw in stockton,, california, now we see it in detroit. >> i know that you are a big advocate. you always say that contract is a contract. but circumstances have changed dramatically in some of these areas. >> a contract is a contract. how would we think about it if we perform your duties as you are so diligently. and let's not think about this

as hefty it is about 30,000 dollars a year and that is because they don't get social security as well rates of this is not lavish. this is very customary. charles: this is why a lot of people say that some of these collective bargaining agreements don't make sense. if you are beholden to me as an elected official, you will continue to give things whether we think they are nice or not. or having people go door-to-door, we have this symbiotic relationship when it comes to the expense of everyone else. >> use a symbiotic and i say incestuous. you have had this between the public sector unions and the democratic party. they have gone reports on both sides at the expense of the taxpayer. nobody has them looking out for the taxpayer.

i think mercedes is right. i think detroit is the first of many innocent hobbies going under because you cannot get blood from a stone. things fall apart, situations and circumstances change and the only certainty in life is uncertainty. this will be extremely painful. but for those folks in detroit, i feel for them. we have been talking about them for 15 or 20 years. if you have been a government employee with all of this conversation going on around you about how there has been no money, you should have been saving. you should have been putting some way. my generation, no one believes social security will be there for us. charles: really quick, the new reality in the contracts. what you see. will it be a lesson learned for this municipalities in a new reality for unions?

>> i think that there will be and i think you'll start to see a lot of people wanting to exact what they would have been willing to accept in terms of deferred compensation right away. which is really going to put a squeeze on the budget. the pension issue is less than 25% of detroit's problem. the issues go far beyond what they are obligated to pay the retirees. that is a city in deep trouble beyond mercedes, what are we looking at? will they get bigger? >> i think that we will start seeing more. again, we are starting to see a lot of the shortfalls in the nation's largest cities. again, there is a light at the end of the tunnel and we are talking about how if the economy is sluggish, it is still growing. they're going to have to keep

cutting. charles: they have to be made. no doubt about it. charles: it's important, i will empower you tomorrow night tracy: tonight on "the willis report," there is a new plan to save the post office. nomar door-to-door delivery for il and it could save billions. also, the latest technology for cars, they talk to each other. should the government make this requiremen you better check out this number, we will tell you which one coming up tonight on "the willis report" reedi."